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US: Dow ends above 20,000 for first time, extending election rally

Thu, Jan 26, 2017 - 6:27 AM

PHOTO: BLOOMBERG

[NEW YORK] The Dow finished above 20,000 points for the first time on Wednesday, after breaching the milestone at the open, extending a stocks rally following US President Donald Trump's election, which sparked hopes of pro-growth policies.

The broad-based S&P 500 also rose 0.8 per cent to 2,298.37, while the tech-rich Nasdaq Composite Index advanced 1.0 per cent to 5,656.34, both new records.

US stocks rose sharply after the election, although they had stalled from mid-December to this week. Analysts said the shift was triggered by Mr Trump's announcements on Tuesday to advance two major pipeline projects that had been blocked by former president Barack Obama.

"I think, in general the market is saying maybe he will get something done in particular as it relates to tax reductions and possibly even economic stimulus," said Sam Stovall, chief investment strategist at research firm CFRA." "I think people are feeling encouraged by his actions to date."

Beyond the Trump effect, Wednesday's records came on a busy day for earnings that included better-than-expected results from Boeing, which shot up 4.2 per cent to make it the biggest gainer in the blue-chip index.

Caterpillar rose 2.0 per cent and Apple 1.6 per cent ahead of their earnings releases in the coming days.

Financial stocks, big winners since Mr Trump's election, also climbed, with JPMorgan Chase and Goldman Sachs both up about 1.5 per cent.